(i.e., Investing in stable dividend stocks (e.g, IBM, Coca-Cola, etc.) and holding them for long periods of time like 3-5 years, and protecting your principal from big losses with a STOP order)
It sounds like a lower-risk strategy to me! If you have the knowledge and experience (and excellent luck), I think investing in individual stocks can be lucrative. However for most people (including a lot of career traders) you see better, more stable returns on an index!
It makes sense to have a certain small % of your portfolio as more high-risk and high-reward investments. And this % depends on your risk profile. You can get one here using my quiz.
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What do you think about value investors?
(i.e., Investing in stable dividend stocks (e.g, IBM, Coca-Cola, etc.) and holding them for long periods of time like 3-5 years, and protecting your principal from big losses with a STOP order)
It sounds like a lower-risk strategy to me! If you have the knowledge and experience (and excellent luck), I think investing in individual stocks can be lucrative. However for most people (including a lot of career traders) you see better, more stable returns on an index!
It makes sense to have a certain small % of your portfolio as more high-risk and high-reward investments. And this % depends on your risk profile. You can get one here using my quiz.